Rising energy bills: 3 ways to save up to $2,349
With energy bills predicted to rise by 50% in the next 2 years, it's time to start making lifestyle changes to reduce the cost of using electricity.
Last week, the treasurer announced the average electricity bill will rise by 20% by the end of this year.
It will rise again by a further 30% by the end of 2023/2024.
How much could your electricity bill cost by 2023?
You can use our calculator to find out how much you could expect to pay by 2023/2024.
Enter your electricity bill from the last quarter to generate an estimate.
Armed with that knowledge, let's look at some of the steps you can take to alleviate these rising costs now – you could save up to $2,349.
Switch energy providers – save up to $300
Finder's Consumer Sentiment Tracker shows even though 43% of Australians don't think their energy provider delivers value for money, only 14% have switched in the last 6 months.
Depending on where in the country you live, the difference between the cheapest and most expensive plans available can be between $200 and $300 a year.
It's a good idea to check the state of play every 6 months by comparing energy plans and ensuring you're still getting the best deal.
Make lifestyle changes – save a minimum of $150
After switching, there are multiple small lifestyle changes you can make to help keep your bills lower:
- Set your aircon to 20°C and no lower. Each degree you set your aircon below 20°C can increase your unit's energy use by 10%. When it is running, make sure to keep your doors and windows shut and limit cooling to the parts of the home you're spending the most time in. Compared to setting it to 18°C, you could save around $50.
- Open your home to cool breezes. If there's a cool breeze blowing, you can avoid turning on your aircon in the first place.
- Dry your clothes outside. Warm summer weather means it's time to ditch the clothes dryer and invest in a hills hoist.
- Limit showers to under 10 minutes. You'll also save on your water bills – 2 birds, 1 stone.
- Install a smart meter. With a smart meter, you could switch to a time-of-use tariff and pay less for energy during off-peak hours.
- Switch appliances off at the wall. Devices still use electricity when they're on standby mode. You could save up to $100 a year just by turning them off when not in use.
Go fully electric – save up to $1,899
A Climate Council Switch and Save report shows Aussies could be missing out by relying on a mix of electricity and gas in their home.
Converting your stove and heating and hot water systems from gas could save you hundreds if not thousands at minimum.
Climate Council calculated the following savings figures for these capital cities.
| City | Savings per year |
|---|---|
| Adelaide | $1,457 |
| Brisbane | $1,424 |
| Canberra | $1,876 |
| Hobart | $1,899 |
| Melbourne | $1,207 |
| Perth | $803 |
| Sydney | $924 |
However, the report found the biggest barrier to going fully electric is the upfront cost of purchasing new appliances.
Climate Council calculated the fastest pay-back period is for Hobart where it would take 6 years on average.
Victoria and ACT, which benefit from government incentives, could reduce payback periods by up to 2 years.
Energy is not the only area of life where bills are rising. See our cost of living hub for the latest news about inflation and ways to save money.
